SINGAPORE (ICIS)--PTT Global Chemical (PTTGC) and South Korean construction and chemical company Daelim Industrial Co will conduct a feasibility study on the Thai firm's planned cracker in the US.
In a stock exchange filing on Tuesday, PTTGC said that the board of its 100%-owned subsidiary PTTGC America has approved the execution of a heads of agreement (HOA) with a subsidiary of Daelim for the study, which includes the front-end engineering design (FEED) of the project in Ohio.
Financial details of the deal were not disclosed.
The companies will also seek to secure sources of funding for the project under the agreement, it said.
PTTGC’s planned US cracker complex at Belmont County, Ohio, will have an ethylene capacity of 1m tonnes/year and will have two 350,000 tonne/year high density polyethylene (HDPE) units; will produce 500,000 tonnes/year of monoethylene glycol (MEG); and 100,000 tonnes/year of ethylene oxide (EO).
In December 2017, PTTGC had said that an investment decision on the US cracker project will be made in the first quarter of 2018.